"Any business that starts out that much in the hole is going to have a hard time," said Connaughton, referring to $128 million in interest expenses. "It's clearly a public policy flaw to assign close to $2 billion worth of Big Dig costs to the Turnpike Authority."

The authority is already planning toll increases in 2008 to counter a $25 million interest increase that it incurs every six years.

According to Connaughton, the Pike's finances will only look worse next year, the first year it will be required to report its unfunded long-term obligations for employee benefits.

"If (the authority) doesn't start funding the health care and pension liability, our credit rating could be in jeopardy," said Connaughton of the current pay-as-you-go system. "We really have a tough road ahead of us and we have to start planning appropriately."

Although the audit was discussed at a public audit committee hearing last week, the authority would not release it until late yesterday afternoon. Director Mary Jane O'Meara did not answer calls for comment.